Posted on 12/18/2014 1:16:24 PM PST by Up Yours Marxists
Crude oil production from U.S. wells is poised to approach a 42-year record next year as drillers ignore the recent decline in price pointing them in the opposite direction.
U.S. energy producers plan to pump more crude in 2015 as declining equipment costs and enhanced drilling techniques more than offset the collapse in oil markets, said Troy Eckard, whose Eckard Global owns stakes in more than 260 North Dakota shale wells.
Oil companies, while trimming 2015 budgets to cope with the lowest crude prices in five years, are also shifting their focus to their most-prolific, lowest-cost fields, which means extracting more oil with fewer drilling rigs, said Goldman Sachs. Global giant Exxon Mobil, the largest U.S. energy company, will increase oil production next year by the biggest margin since 2010. So far, the Organization of Petroleum Exporting Countries’ month-old bet that American drillers would be crushed by cratering prices has been a bust.
(Excerpt) Read more at sltrib.com ...
Thackney ? What sayth thee ? About ?
” declining equipment costs and enhanced drilling technics more than off sets the decline in oil prices “
Sorry, that’s the best I can do from memory from the article, for I don’t have a desktop PC to minimize the page or copy and paste the quote.
More than? Oh H3LL no! Not even close.
Companies all over are cutting budgets for 2015.
There are a few major players who are licking their chops with this oil bust.... XOM and CVX. If oil drops another $20-30/bbl, it will be like a cheap all you can eat M & A buffet for these two.
This may all very well be true, I don’t know. What I do know is one of the customers our service company works for right now runs 6 frac crews. What we are hearing is they only plan on letting one go if prices hit $45. That doesnt mean that they wouldn’t do that anyway if prices stay down for a while, and it may also only be field talk anyway so who knows? The only real way to know is to watch the weekly rig count.
Don't you just love the concept of unintended consequences??????
I don’t see the need to expand it. I’m okay with topping off the last 5% needed to fill.
A lot of that oil was put in under a “Royalty in kind” program. Instead of getting the 1/6~1/8 payment from the value of oil produced on Federal leases, they accept the oil instead.
Doesn’t make much difference in that situation by price. Oil prices high, you get high value; oil prices low; you were getting low value anyways.
A new Lexicon ....... “ Sweet “ unintended consequences.
By George, I think they are painted into a corner.
Those enemys of Israel who want to wipe Israel off the face of the earth, I have NO pity for them,,or no loved lost.
Those enemy’s of God and his beloved Israel and his church deserve what’s coming to them by the hand of God.
The stuff for a motion picture.
When he started out with the idea the price of natural gas went into a 15 year lull.
His investors were interested in only proven methods.
His early wells were scoffed at as temporary blips in production.
He was broke, with a sick wife and diagnosed with prostate cancer.
But he kept pushing his dream.
Other exploration players came close to success in the meantime, but backed off and were losers.
Saudi Arabia- 45%
Russia- 14%
United States- 0.9%
You would have thought that they would have thought this thing through first.
Plus, them eeeeevillll oil companies get some good ink instead of being bashed by those who really want out of control energy costs...
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